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Performance Shipping Inc. Common Shares (PSHG) — WACC Analysis

WACC Breakdown

Performance Shipping Inc. Common Shares (PSHG) has a weighted average cost of capital (WACC) of 4.0%. The cost of equity is 7.3%, derived from a beta of 0.45 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.3%. The capital structure is 8.5% equity and 91.5% debt.

Interpretation

A WACC of 4.0% suggests that the market views Performance Shipping Inc. Common Shares as relatively low-risk, with a lower cost of financing.

Investors can compare PSHG's WACC of 4.0% against industry peers to gauge its relative financing costs. A beta of 0.45 reflects the stock's volatility relative to the broader market.

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VALUATION

PSHG WACC: 4.00% for Performance Shipping Inc. Common Shares

Current inputs imply a 7.35% cost of equity and a 2.97% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Performance Shipping Inc. Common Shares Common Stock (PSHG) WACC Results
Weighted Average Cost of Capital
4.00%
Cost of Equity
7.35%
Risk-Free Rate4.67%
Beta0.45
Market Risk Premium4.23%
Cost of Debt
2.35%
Pre-Tax Cost of Debt2.97%
Tax Rate21.00%
Tax Shield0.62%
Capital Structure
Equity: 8.48%($21.20M)
Debt: 91.52%($228.68M)
Equity Component
0.62%
8.48% × 7.35%
Debt Component
2.15%
91.52% × 2.35%

Performance Shipping Inc. Common Shares (PSHG) WACC in context

Performance Shipping Inc. Common Shares (PSHG) currently screens with an estimated WACC of 4.00%. That blends a 7.35% cost of equity, a 2.97% pre-tax cost of debt, and a 8.48% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What PSHG WACC implies

A 4.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PSHG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.45 and equity accounts for 8.48% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

PSHG Company Analysis

Review profitability, valuation multiples, filings, and business context.

PSHG DCF Valuation

Carry the same discount-rate assumptions into a full DCF model.

Compare against peers

Put the valuation and cost of capital into a peer context.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.